Smaller Exchanges Complain
Big Board Role May Cut Trades

The nation's regional stock exchanges complained to federal regulators that the rival New York Stock Exchange could be using brokerage-firm inspections to discourage trading on the smaller exchanges.

In a letter to Securities and Exchange Commission Chairman Arthur Levitt Jr. last month, the regional exchanges suggested that the Big Board, "in its capacity as designated examining authority, appears to be using undue influence in carrying out its mandate from the SEC to examine broker-dealers' best execution obligations."